Top 7 Benefits of Forensic Auditing You Should Know Aboutby Manoj Pahwa Ca Manoj Pahwa
Financial auditing services ensure that a business is conducted by the legal and ethical standards set by the local governments. By tracking the trail of transactions by the business, a forensic auditor prevents that business from committing any type of fraud and hoodwinking authorities and regulatory bodies. Thus, Manoj Pahwa and Associates provide their services as an independent party to ensure the regulatory bodies are never cheated and your business remains legally strong.
What does a Forensic auditing team do?
A forensic auditing team tracks the trail of transactions like sales, purchases, regulatory compliance filed and tries to identify both the fraudsters and gaps within an organization to prevent future fraudulent activities.
Benefits of Forensic auditing
The primary benefits of forensic auditing are as follows:
1. Reducing costs: because only an independent party is responsible for conducting forensic auditing, you can expect the cost to be far lower than you think. By ensuring an unbiased approach to auditing, you can ensure that your business don’t incur legal losses due to your misplaced judgement.
2. Providing effective solutions: Forensic auditing, by mapping a money trail, can also map any gaps that you have in your current financial operations. By plugging those gaps, you prevent your business from being buried under the weight of legal penalties.
3. Risk assessment: Auditing is done only by certified Chartered Accountants, they pool all their knowledge to check, and then recheck your financial accounts to create a comprehensive report for you. In doing so, they establish a consolidated report to ensure that your business doesn’t fall down.
4. Legal support: Forensic auditors give you a closer look into the legal issues you might be facing. By dealing with your issues, you get the legal support you need to keep your organization legally relevant.
5. Tracking illegal activities: This benefit is the primary function of forensic accounting. By trailing the money, an auditor can shed a light on the illegal activities that happening within an organization to cheat the regulatory authorities.
6. Creating better economic policies: Forensic auditing helps noting down the risks to the finances of the company. In the report that it generates, it also specifies the current gaps within the organization’s accounting structure. That report can be used to formulate better economic policies in the future.
7. Simplifying litigation: Forensic auditing reports presents a complete picture of the organization’s finances, complete with records of all the transactions, and discrepancies. Such a report is easier to present in a court of law if there is a lawsuit filed against a company.
Created on Jul 11th 2020 06:08. Viewed 221 times.